Final CAO Procedure for Management Delibration PDF
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Uploaded by FreshestDatePalm5924
2024
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Summary
This document outlines the procedures for customer accounts and operations at Siinqee Bank S.C. in Ethiopia. It details various account types, eligibility criteria, and transaction authorization limits. The document also covers transaction reconciliation and inter-branch procedures.
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SIINQEE BANK S.C. CUSTOMERS’ ACCOUNT AND OPERATIONS PROCEDURE FIRST REVISION SIB/PROC/-------/2024 FEBRUARY 2024 FINFINNEE, ETHIOPIA...
SIINQEE BANK S.C. CUSTOMERS’ ACCOUNT AND OPERATIONS PROCEDURE FIRST REVISION SIB/PROC/-------/2024 FEBRUARY 2024 FINFINNEE, ETHIOPIA 1 Customer Accounts Operation Procedure SIINQEE BANK S.C. Document Description............................................................................9 Acronyms.............................................................................................10 Section I: General Provisions.................................................................11 1.1. Preamble.................................................................................................... 11 1.2. Short title of the procedure....................................................................12 1.3. Definition of Terms and Concepts.........................................................13 1.4. Scope of the Procedure...........................................................................20 1.5. Purpose of the Procedure.......................................................................20 1.6. Governing Rules....................................................................................... 20 Section II: Roles and Responsibility......................................................21 2.1. The President............................................................................21 2.2. VP, Micro finance and Banking Operation....................................21 2.3. Chief-Information Technology.....................................................21 2.4. Chief Risk and Compliance Management.....................................22 2.5. Chief-Internal Audit...................................................................22 2.6. Director, Branch Banking Operaton and Support..........................22 2.7. Director, District Business Support.............................................24 2.8 Director – Siinqee Ihisan Banking...............................................25 2.9 Manager – Customer Account and Operations Support.................26 2.10 Manager- Issue Accounts............................................................27 2.11 Manager, KYC and Compliance....................................................28 2.12 District Director.........................................................................29 2.13 District Operation Manager........................................................30 2.14 District Senior Compliance Officer...............................................32 2.15 Branch Manager........................................................................32 2.13. Customer Service Manager.........................................................34 2.14. Branch Operation Manager.........................................................36 2.15. Branch Internal Controller..........................................................37 Section III: Procedural Statements........................................................39 3.1. CUSTOMER CLASSIFICATION.......................................................39 3.1.1. Private Customers.................................................................................... 39 3.1.1.1. Individuals................................................................................................. 39 2 Customer Accounts Operation Procedure SIINQEE BANK S.C. 3.1.1.2....................................................................................... Private Businesses39 3.1.1.3.................................................................................. Other Private Entities39 3.1.2. Government Organizations.....................................................................40 3.1.3. Regional Government Entities...............................................................40 3.1.4. Federal Government Entities..................................................................40 3.1.5. Public Enterprises.................................................................................... 40 3.1.6. Cooperatives & Associations..................................................................40 3.1.6.1. Cooperative Societies....................................................................40 3.1.6.2. NGOs, Charities, Societies and Associations..............................40 3.1.7. Non-Bank Financial Institutions.............................................................41 3.2. Types of Deposit Acounts..........................................................41 3.2.1. Local Currency Deposit Account...................................................41 3.2.2. Foreign Currency Deposit Accounts.............................................41 3.3. Features of Local Currency Deposit Accounts..............................42 3.3.1. Saving Deposit Accounts.......................................................................42 3.3.1.1. Ordinary Savings Account.............................................................42 3.3.1.2. Compulsory Saving Account..........................................................43 3.3.1.3. Handhura/Minor Account...............................................................44 3.3.1.4. Youth Savings Account..................................................................44 3.3.1.5. Sorema (Retirement) Savings Account.......................................45 3.3.1.6. Sebbeta Ayyo Savings Account....................................................45 3.3.1.7. Wabi Farmers Saving account......................................................45 3.3.2. Special Savings Account.........................................................................46 3.3.3. Demand Deposit (Current) Account......................................................46 3.3.3.1. Ordinary Demand Account............................................................46 3.3.3.2. ECX Related Accounts....................................................................47 3.3.3.3. Interest Bearing Demand Deposit Account................................48 3.3.4. Fixed – Time Deposit................................................................................ 48 3.3.5. Other distinguishing features of deposit products............................49 3.3.5.1. Joint Accounts.................................................................................. 49 3.3.5.2. Earmarked Accounts.......................................................................49 3.3.5.3. Accounts for Interdicted Persons.................................................50 3.3.5.4. Undocumented Ethiopian national Customer Account.............50 3 Customer Accounts Operation Procedure SIINQEE BANK S.C. 3.3.5.5. Staff Accounts................................................................................. 50 3.3.5.6. Cash Indemnity Account................................................................50 3.3.5.7. Overdraft Account..........................................................................51 3.4. Features of Foreign Currency Deposit Products...........................51 3.4.1. Foreign Exchange Retention Account..........................................52 3.4.2. Foreign Currency Fixed – Time Deposit.......................................53 3.4.3. Current / Demand/Deposit Accounts............................................53 3.4.4. Non- Repatriable Birr Account (Saving Account).......................53 3.4.5. Foreign Currency Saving Accounts..............................................54 3.4.6. Ethiopian Citizen or Origin Living in Foreign Land (ECOLFL) Saving Account 54 3.5. Eligiblity criterias to open account..............................................55 3.5.1. Entities Eligible to Open Domestic Deposit Account(s)............55 3.5.2. Entities Eligible to Open a Foreign Currency Account (s)........56 3.6. Document Requirements to Open Deposit Accounts.....................56 3.6.1. Identification Cards (IDs) Acceptable to Deposit Account.......56 3.6.2. Documents required to open Local Currency Deposit Accounts57 3.6.2.13. Earmarked Accounts, Firms Bankrupt and under Liquidation or Establishment........................................................................................................ 61 3.6.2.14. Accounts Opened to Manage and Control Project Fund...........63 3.6.2.15. Joint Venture Account....................................................................63 3.6.2.16. Non – Governmental Organization (Local)..................................64 3.6.2.17. Non – Governmental Organizations (Foreign)............................64 3.6.3. Documents Required for Opening a Foreign Currency Account64 3.7. Inter – Branch Transactions........................................................67 3.7.1. Inter Branch Transactions Allowed..............................................67 3.7.2. Inter Branch Transactions Not Allowed.......................................67 3.7.3. The Limited to inter- Branch Transactions.................................68 3.7.4. Additional Duties and Responsibilities for Inter Branch Transactions 68 3.7.5. Custody of Inter- Branch Transaction Documents.....................68 3.7.6. Head Office Account Reconciliation.............................................69 3.7.7. Transaction handling when there is Network Interruption at Branches 69 3.8. Reconciliation and Balancing......................................................69 4 Customer Accounts Operation Procedure SIINQEE BANK S.C. 3.8.1. Reconciliation of Suspense’s: Accounts Receivable/payables 69 3.8.2. Reconciliation and balancing of ATM Transactions...................70 3.8.3. Exceptions in ATM Reconciliation and Balancing......................75 3.8.4. POS Reconciliation and Balancing................................................77 3.8.5. Mobile Banking Transaction Reconciliation................................81 3.8.6. ATM Suspense Account..................................................................82 3.8.7. Abnormal Balance of Accounts.....................................................83 3.8.8. Transactions Checking and Custody of Documents..................83 3.9. Transaction Authorization Limit...........................................................84 3.9.1. Cash Authorization Limit on CASA and Bankers’ Cheque /CPO/84 3.9.2. Non-Cash Transaction Authorization Limits...............................85 3.9.3. For Lost and /or Expired Bankers’ Cheque /CPO/.......................85 3.9.4. Offline Branch Authorization Limit...............................................85 3.9.4.1. Authorization of Payment Limit when a Networked Branch Becomes Offline Due to Network Failure...........................................................................85 3.9.5. Authorization Limit for Account Receivable and Expense.......86 3.10. ACCOUNT OPENING AND CLOSING PROCUDERS..................................86 3.10.1. Account Opening................................................................................ 86 3.10.2. KYC Reference maintenance..............................................................87 3.10.3. Customer Information File/ UNIQUE CUSTOMER ID/...........................87 3.10.4. Customer ID Merging..........................................................................89 3.10.5. Account Opening Procedures at Branches..........................................89 3.10.6. Account Closing Procedure.........................................................101 3.11. Collection................................................................................................. 103 3.11.1. Collection of Cash for Deposit....................................................103 3.11.2. Collection of Loan Repayment at Branch Office.......................105 3.11.3. Collection of Saving and Loan Repayment out off Branch Office105 3.11.4. Tax/Utility Payments....................................................................106 3.11.5. Collection of Cash for Money Transfer......................................107 3.11.6. Bankers’ Cheque /Cashiers’ Payment Order (CPO)/................110 3.11.7. Fund Transfer - Account to Account..........................................112 3.11.8. Purchase of Foreign Currency Notes.........................................113 3.11.9. Collection of Negotiable Instruments for Deposit...................114 3.11.9.1. Local Cheques................................................................................ 114 5 Customer Accounts Operation Procedure SIINQEE BANK S.C. 3.12. High Value Collection............................................................................. 118 3.12.1. Incoming MT103............................................................................118 3.13. PAYMENT................................................................................................. 120 3.13.1. Payment from Current Accounts......................................................120 3.13.2. High Value Payment.........................................................................123 3.14. FCY Cheques (NRT, NRNT)....................................................................126 3.15. Withdrawal from Savings Accounts.....................................................127 3.16. Payment of Foreign Remittance Transfer..........................................129 3.17. Payment against Local money transfer..............................................131 3.18. Bankers’ Cheque /Cashier Payment Order (CPO)..............................132 3.18.1. CPO Payment to the Beneficiary or to the Purchaser.............132 3.18.2. Payment of Expired Bankers’ Cheques/CPOs/..........................133 3.18.3. Payment of a Lost Bankers’ Cheque /CPO/...............................134 3.19. Salary Payment for Non-Staff...............................................................138 3.20. Withdrawal from Retention Account...................................................139 3.21. Other issues in opening, collection and payment.............................139 3.21.1.Handling and Management of Suspicious Transactions..................139 3.22. Cimmisa/Safe Deposit Box Saving Services.......................................142 3.23. Cimmisa/Safe Deposit Box Service Termination...............................144 3.24. Inactive Accounts................................................................................... 144 3.24.1. Payment from Inactive Saving Accounts..................................146 3.25. Handling of Cash Indemnity Account..................................................147 3.25.1. Cash Indemnity Account Opening..............................................147 3.25.2. Cash Payment – Cash Indemnity Account.................................149 3.26. Handling and Issuance of Cheque Books............................................150 3.27. Cheque Personalization.........................................................................151 3.34.1. Responsibility of Braches in Cheque Personalization.............151 3.34.2. Responsibility of BBOS in Cheque Personalization..................152 3.34.3. Responsibility of ITAMS in Cheque Personalization................152 3.34.4. Responsibility of Director - Procurement and Supply Management 152 3.34.5. Handling of Uncollected Cheque Books by the Customers....153 3.28. Preparation of Current Account Statement.......................................153 3.29. Features of a Cheque Presented for Payment..................................153 6 Customer Accounts Operation Procedure SIINQEE BANK S.C. 3.30. Negotiability and Endorsement of Cheques......................................154 3.30.1. Endorsement of a Cheque...........................................................154 3.30.2. Use and Transferability (Negotiability) of Cheques................155 3.31. Cheques Issued in the Name of Organizations..................................156 3.32. Stop Payment Order.............................................................................. 156 3.37.1. Request for Stop Payment Order...............................................156 3.37.2. Cancellation of a Stop Payment Order......................................157 3.38. Insufficient Fund Cheques Handling...................................................158 3.38.1. Insufficient ChequePresented at Account Holding Branch....160 3.38.2. Insufficient Fund Cheque Presented to other Bank’s Branch 162 3.39. Release of Restricted Amount Due to Insufficient Fund..................163 3.40. Issuance of Bank Statement.................................................................164 3.41. Customer Account Balance Confirmation...........................................164 3.42. Rubber Stamp......................................................................................... 165 3.43. Customers’ Standing Instructions.......................................................166 3.44. Blocked Account..................................................................................... 167 3.44.1. When an Account Blocking Request is lodged to a Branch....168 3.44.2. When an Account Blocking Request is lodged to the Bank...168 3.45. Ticket and Mandate File Documentation............................................169 3.46. Un-Issued Passbook, Check books and CPOs Stock.........................169 3.47. Amendment or modification of customers account profile.............170 3.47.1. Name Changes Due to Court Order............................................170 3.47.2. Name Change Due to Recording Error.......................................171 3.47.3. Signature Change.........................................................................172 3.48. Handling Power of Attorney.................................................................173 3.49. Management of Keys............................................................................. 175 3.49.1. Custody of Keys............................................................................175 3.49.2. Strong Room Doors, Grills and Vault Keys...............................175 3.49.3. Cash Box Keys and Combination Code......................................176 3.49.4. Vault Combination Code..............................................................176 3.49.5. Branch Main Gate, Safe Cabinet and Other Keys....................176 3.49.6. Duplicate Keys...............................................................................177 3.49.7. Replacement of Lost Keys...........................................................177 7 Customer Accounts Operation Procedure SIINQEE BANK S.C. 3.50. CASH OPERATIONS................................................................................. 178 3.50.1. Cash Handling within a Branch.........................................................178 3.50.2. Activities during Lunch Time and Day End Closing...........................182 3.51. Cash Difference (Shortage/Excess) Handling....................................185 3.51.1. Refund of Excess Cash.................................................................185 3.52. Forged (Counterfeit) Notes..................................................................187 3.53. Cash Custody.......................................................................................... 187 3.53.1. Good Coins..................................................................................... 187 3.53.2. Good Money Notes........................................................................188 3.53.3. Birr Notes that are in Bad Conditions or Deteriorated Notes189 3.54. Exchange of Birr Notes and Coins.......................................................190 3.54.1. Exchange of Birr Notes................................................................190 3.54.2. Exchange of Coins.........................................................................191 3.55. Cash Handling at Sorting Table...........................................................191 3.56. Cash Consolidation................................................................................. 191 3.57. Cash Lodgment to the Vault.................................................................192 3.57.1. In the Middle of Operation..........................................................192 3.57.2. At the Day End Closing................................................................192 3.58. Cash Box and Stamp Management......................................................193 3.59. Handling of Branch Cash Vault and ATM Safe Keys and Combinations 194 3.60. Handing and Taking Over Vault Cash.................................................195 3.61. ATM Cash Handing within a Branch....................................................195 3.62. Cash Related Internal Control Issues..................................................197 3.62.1. Cash Basic Concepts and Principles..........................................197 3.62.2. Concentration and Security.........................................................197 3.63. Common Errors that Needs to be avoided.........................................200 3.64. Attendance and Conduct.......................................................................201 3.65. Cash Dispatching to Issue Account.....................................................202 3.65.1. City Branches................................................................................. 202 3.65.2. Outlying Branches........................................................................202 3.66. Security Precautions..............................................................................205 Section IV. Miscellaneous Provisions...................................................205 4.1. Revision of the Procedure.....................................................................205 8 Customer Accounts Operation Procedure SIINQEE BANK S.C. 4.2. Exceptions............................................................................................... 205 4.3. Effective Date.......................................................................................... 205 Section V. ANNEXS.............................................................................206 Annex 8................................................................................................................. 234 Summary of Eligible persons and Required Documents for account opening234 Local currency (Birr) Accounts Opening..........................................................234 Foreign currency (FCY) Accounts Opening.....................................................239 Annex 9.............................................................................................242 Customers’ Account and Operations Formats........................................................242 Document Description 9 Customer Accounts Operation Procedure SIINQEE BANK S.C. This Customers accounts Procedure outlines the procedure for handling and managing customer accounts within the bank, and the procedure applies to all employees involved in customer account management, including account opening, maintenance, and closure. The procedure encompasses five sections. The first section introduces the preamble, short title, definition of key terms, basic governing rules, scope and objectives of the procedure. Section II describes Roles and Responsibility of Parties in charge of the procedure's implementation. In Section III, procedural statements have been stated providing detailed procedures of Customer Classification, the Type and Feature of Deposit accounts, Local and Foreign Currency Deposits accounts, the account opening and closure , eligibility criteria and documents required to open a deposit account, other distinguishing features of demand deposits , Collection and payments, inter branch account transaction, Check account operation, and cash operation The fourth section, 'section IV' describes the miscellaneous provisions including exceptions, penalties for breach of the procedure, possibilities of the procedural revision and its effective dates while the last section, 'Section V' presents annexes consists of formats and information that assist in execution of the procedure. Ultimately, all employees involved in customer account operations must familiarize themselves with this procedure and adhere to it in their day-to-day activities. 10 Customer Accounts Operation Procedure SIINQEE BANK S.C. Acronyms ATM Automated Teller Machine A/C Account ATS Automated Transfer System BOD Board of Directors BBOS Branch Banking Operation and Support CASA Current account and Saving Account CBE Commercial Bank of Ethiopia CDD Customer Due Diligence CPO Cashiers’ Payment Order CRM Customer Relationship Management CSM Customer Service Manager CSO Customer Service Officer CTS Cheque Truncation System EATS Ethiopian Automated Transfer System ECX Ethiopian Commodity Exchange EFIC Ethiopian Financial Intelligence Center FCY Foreign Currency ID Card Identification Card KYC Know Your Customer MSME Micro, Medium and Small Enterprise MT Money Transfer MTO Money Transfer Organization NBE National Bank of Ethiopia NGO Non-Government Organization NRNT Non- Resident Non-Transferable NRT Non Resident Transferable IS Information System ITAMS Information Technology Application Management and Support NRT FCY Non-Resident Transferable Foreign Currency Account SBB Supervision of Banking Business SCSO Senior Customer Service Officer SMS Short Message Service PLC Private Limited Company SWIFT Society for Worldwide Interbank Financial Telecommunication TIN Tax Identification Number USD/Dollar United States Dollar V/P Vice President 11 Customer Accounts Operation Procedure SIINQEE BANK S.C. Section I: General Provisions 1.1. Preamble Whereas; in this fast-changing and competitive business environment, it is necessary to revise and align organizational work procedures in line with the emerged external and internal changes and system requirements to ensure responsiveness to customer service; Whereas, revising and aligning of working procedures is also key to reduce errors, rework, exceptions, and respond to the dynamic customer’s expectations; Whereas; internally Siinqee bank Share Company has recently changed its organizational structure and implemented the new core banking system-Oracle Flex-cub and externally, NBE has issued different new directives; Whereas; these require clearly assigning duties and responsibilities, and incorporate the lessons gained from using the new integrated core banking solution, and the recently issued NBE directives; Now, therefore, the Executive Management of Siinqee Bank S.C, pursuant to the power vested to it under relevant provision of the Executive Management Charter of the Bank, has issued this CAO Procedure. 12 Customer Accounts Operation Procedure SIINQEE BANK S.C. 1.2. Short title of the procedure This procedure can be cited as the “Customers Account Operation (CAO) procedure” of Siinqee Bank S.C (First Revision). 1.3. Definition of Terms and Concepts Unless the context requires otherwise, the terms and concepts in this procedure has the foillowing meanings; 1.3.1. Accounts for Interdicted Persons: shall mean accounts opened for a person designated by a court of law as being incapable of discharging her/his legal rights or legally be interidicted person; 1.3.2. Administrative Agencies: shall mean Government entities established by Regional or Federal governments to provide special service to the public; 1.3.3. Administrative Entities:- shall mean All administrative organs established under regional or federal government; 1.3.4. Associations: shall mean entities which are established based on the civil code of Ethiopia and include regligious organizations, ider,equib, sectorial associations, professional associations,trade unions and political parties among others; 1.3.5. Entities: shall mean which are established based on the civil code of Ethiopia and include religious organizations, ider,equib, sectorial associations, professional associations,trade unions and political parties among others; 1.3.6. Authorization: shall mean the process of approving or declining any business transactions; 1.3.7. Automated Teller Machine (ATM): shall mean refers to a self-service terminal that has electronic capacity, accepts PIN, dispense/receive money, and may provide balance confirmation, fund transfers between accounts and other services; 13 Customer Accounts Operation Procedure SIINQEE BANK S.C. 1.3.8. Banker’s Cheese/CPO/: shall mean a type of endorsable instrument prepared by banks as per customer request and is payable upon presentation; 1.3.9. Biometrics:- shall refers to an electronic device used to capture a digital image of the finger print pattern, iris,face ,etc; 1.3.10. Charities: shall mean Associations established by the proclamation organization of Civil Societies (Organizations of Civil Societies Proclamation no 1113/2019) to serve the public at large or a given social section (such as women, children, disabled, etc.); 1.3.11. Company: shall mean a legal entity made up of an association of persons –be it natural, legal or a maximum of both, to carry out commercial or industrial enterprises; 1.3.12. Cooperative Societies: - shall mean Associations established by individuals on voluntary basis, democratically managed by members themselves to solve their economic and social problems. Cooperatives are unique in sense that they are user-owned, user-benefited and user controlled as the benefits obtained are returned to the members; 1.3.13. Cheque Clearing: shall mean referres to the process of moving a check and its accompanying funds from an account with one bank to an account with a different bank. 1.3.14. Cimmisa/Safe Deposit Box Saving Services: Cimmisa/safe deposit box Saving Service is a saving service that will be delivered to any individual who cannot physically appear to Siinqee bank branch to deposit due to the nature of their business 1.3.15. Contract: shall mean financial dealings made with customers with or without a maturity date and that can be maintained in written form. 1.3.16. Core Banking: shall mean a banking system that is centralized, online and real-time exchange which is provided by networked branches of the 14 Customer Accounts Operation Procedure SIINQEE BANK S.C. bank where customers may access their bank account and perform basic transactions from networked branches. 1.3.17. Corporate Customer: shall mean a legal or an artificial person, organizations, enterprises, associations, government offices and the like that the bank considers of having high value in terms of the benefit/business they bring to the bank. 1.3.18. Customer: shall mean a legal person or natural person with whom the bank agrees to conduct business; 1.3.19. Compulsory saving is a mandatory account opened by customers to access some microfinance loan facility provided by Siinqee Bank, and no debit transaction is allowed on this account until the loan is settled; 1.3.20. Demand Deposit (Current or checking) Account: shall mean a non- interest bearing account operated by Cheque; 1.3.21. Diaspora Accounts: Shall mean a foreign currency account opened for Ethiopians living abroad (who lived abroad for one year and/or in due process of leaving Ethiopia to live and work abroad for more than one year ); and eligible foreign nationals of Ethiopian origin; 1.3.22. Document Authentication: shall mean the process of checking the genuineness of documents from the issuing organs or other reliable sources; 1.3.23. Earmarked Accounts: shall mean accounts opened with other descriptions after the name/s of the account holder/s; 1.3.24. Ethiopia Commodity Exchange (ECX): shall mean an organized marketplace, where buyers and sellers come together to trade, assured of quality, quantity, payment and delivery; 15 Customer Accounts Operation Procedure SIINQEE BANK S.C. 1.3.25. Exceptions: shall mean events that are not clearly stated on this procedure but the nature of the event are within the spirit of this procedure; 1.3.26. Ethiopian Citizen or Origin Living in Foreign Land (ECOLFL) Savings Accounts: Account opening for the purpose of diaspora mortgage saving account and /or diaspora automobile saving account and/or investment saving account and deposits are made in eligible foreign currencies; 1.3.27. ECX Client Pay-in Account: An Account maintained by members on behalf of their clients. Similar to member pay in account, it serves as depository account for which debits from the account are possible only by instruction of ECX; 1.3.28. ECX Client pay- out Account: An Account maintained by members on behalf of their clients. Similar to member pay out account, the Account ownership rests with the member account holder; 1.3.29. ECX member pay-in account: An account maintained by trading members of ECX; which serve as payment guarantee to the buyer and will eventually be used for payment against the sales agreement between buying and selling parties (Traders), members only can deposit to this account; 1.3.30. ECX member pay-out account: An account maintained by trading members of ECX; who trade in their account. This account is used to receive payment from the trading and the member account holder has an exclusive right on the account (can withdraw and deposit funds); 1.3.31. Fixed Time Deposit: shall mean a type of contact in which deposit is accepted for a certain period of time for a higher interest rate than the prevailing saving interest rate; 16 Customer Accounts Operation Procedure SIINQEE BANK S.C. 1.3.32. Foreign Exchange Retention Account: shall mean a foreign currency account that allows exporters and recipients of foreign remittance to hold specified amount of their foreign earnings for a defined period and use these fore holdings for the promotion of their business or import of items related to their business; 1.3.33. Foreign-Currency Accounts: shall mean to an account whose source of fund is overseas and that can be maintained in foreign currency; 1.3.34. Fund Transfer: shall mean account to account money transfer among accounts of the bank or from bank’s account to other bank customers’ accounts by the request of the customer; 1.3.35. Foreign Currency Saving Accounts: A saving account Denominated in Acceptable Foreign Currency (USD, EURO and GBP) maintained as per the legibility criteria of NBE DirectiveEstalishment and operation of Foreign Currency Saving Account for Residents of Ethiopia, non-Residents Ethiopian and Non-Residents Ethiopian origin Directive No. FXD/68/2020. 1.3.36. High Value Transfers: fund transfer forwarded from/to other banks or participants and transactions that are considered urgent or involve high value. 1.3.37. Individual: shall mean a natural person or group of natural persons that are not formed in any form of legal person like business organizations, cooperative societies, associations and charities; 1.3.38. Inter Branch: shall mean transactions whose source account and destination account are held at different branches; 1.3.39. Interest Bearing Demand Deposit Account: shall refers to checking account which bears interest, which could be less than the minimum interest rate of saving account set by the NBE; 1.3.40. Mal-operation list : that registered held by the National Bank of Ethiopia, indicating the names of demand deposit account holders whose 17 Customer Accounts Operation Procedure SIINQEE BANK S.C. Cheque have been dishonored repeatedly and whose accounts are closed by banks; 1.3.41. Minor/Handhura Account: shall mean accounts opened for under-aged individuals (minors) by their parent(s)/Tutor of the minor by a court order; 1.3.42. Non- Resident Non-Transferable Birr Account (NRNT): shall mean an account maintained in birr and its convertibility to FCY needs approval by the National Bank of Ethiopia. (All sources to this account must be in foreign currency); 1.3.43. Non-Resident Transferable Birr Account (NRT): shall mean an account maintained in birr by the debit of which funds can be transferred abroad in foreign currency without the necessity of obtaining foreign exchange permit (all sources for deposits in this account should be foreign currency); 1.3.44. Non-Resident Transferable Foreign Currency Account (NRT FCY): shall mean an account maintained in foreign currency by the debit of which funds can be transferred abroad without the necessity of obtaining foreign exchange permit 1.3.45. Partnership: A type of business organization in which two or more individuals pool money, skills and other resources and share profits and loss in accordance with terms of their partnership agreement and it may established in the form of ordinary partnership, joint venture, general partnership or limited partnership; 1.3.46. Personal Identification (PIN): Refers to a secret numeric password shared between the user and an electronic payment system which is used to access electronic banking service; 1.3.47. Point of sale: shall refer to the place at which a retail transaction or sales is carried out; 18 Customer Accounts Operation Procedure SIINQEE BANK S.C. 1.3.48. Private Business Establishment: A Business established as sole proprietorship or Business organization which are not owned by the government; 1.3.49. Public Enterprise: Shall refer to wholly state owned enterprise established for profit ,manufacturing,distribution,service rendering or other economic and related activities; 1.3.50. Outgoing Local Money Transfer: shall mean money transfer to a designated beneficiary by debiting the account of the sender; 1.3.51. Overdraft Account: shall mean a demand deposit account from which withdrawal of money beyond the available balance of the account holder is allowed up to a certain approved ceiling/ limit; 1.3.52. Saving Account: shall mean an interest/non-interest bearing deposit account with the Siinqee Bank maintained by physical and legal persons; 1.3.53. Sebbeta Ayyo Saving Account: shall refer to a type of saving account designated for women aged 18 years and above; 1.3.54. Special Savings Account: shall refer to saving account operated by cheque, which is interest bearing account; 1.3.55. Societies: Shall mean associations which are established, by the proclamation for charities and societies (no 621/2009 as amended 1113/2011, to protect the interest of their members and specific segment or group of the society; 1.3.56. Sole proprietorship: A business established by a single natural person; 1.3.57. Suspicious Transaction; shall mean a transaction or an attempt of transaction in which a financial institution or its officer has reasonable grounds to suspect that funds are the proceeds of crime, or are related or linked to, or is to be used for financing of terrorism and includes any 19 Customer Accounts Operation Procedure SIINQEE BANK S.C. suspected engagement of a customer in unlawful financial transactions or attempts of circumventing any; 1.3.58. Teller ID: shall mean an identification number that identifies the staff involved in cash related tasks on the core banking system; 1.3.59. Till to Till Transfer: shall mean the transfer of cash from Customer Service Officer - (at front) to Senior Customer Service Officer or vice versa through the system; 1.3.60. Till to Vault Transfer: shall mean the transfer of cash from the Senior Customer Service Officer to Vault through the system; 1.3.61. Tracer: shall mean a list of items in the subsidiary ledger that the total shall agree with the general ledger balance that the source may be kept manually or on the system like CPO’s payable, LMTS payable, account receivables, etc. 1.3.62. Unique Customer ID: shall means a system generated code capable of uniquely identifying account holders of a financial institution based on certain attributes and characteristics; used for identifying and monitoring financial transactions of customers in a comprehensive and combined manner at a customer level for ensuring of compliance to the respective NBE Directive and also better management of risks associated with same; 1.2.1. Vault to Till Transfer: shall mean the transfer of cash from the vault to Senior Customer Service Officer through the system; 1.2.2. Verification of Signature: shall mean the checking of the signature with naked eye without sending the document/instrument to external forensic department. 1.2.3. Undocumented Ethiopian Nationals: refers to individuals who don’t possess any types of identification document used to open saving deposit account but they are allowed to open accounts by taking biometric data (i.e. 20 Customer Accounts Operation Procedure SIINQEE BANK S.C. photograph and finger print) and specimen signature of the individual on the spot and in the premises of the branch’s office. 1.4. Scope of the Procedure This procedure shall cover and govern operational activities of the Customers’ Accounts and Operation Procedure, account based transactions and the duties and responsibilities of performers. 1.5. Purpose of the Procedure The purposes of this procedure are to: 1.5.1. Ensure standardization and quality service in the branch banking; 1.5.2. Clearly assign the duties and responsibilities of each performers and decision maker at branches, district office and Head office in relation to Customers’ accounts, and account based transactions and related operations; 1.5.3. To incorporate different manuals in to one single reference document 1.5.4. Provide guidance and support to all employees under Microfinance and Banking operation process. 1.6. Governing Rules This procedure shall be governed by: 1.6.1. The commercial code of Ethiopia and other related laws and regulations of the country; 1.6.2. The relevant Directives of the National Bank of Ethiopia ; 1.6.3. Corporate Governance Framework of the Bank; 1.6.4. The accounting policy of the bank; and 1.6.5. Internal control and Risk and compliance frame work of the bank. 21 Customer Accounts Operation Procedure SIINQEE BANK S.C. Section II: Roles and Responsibility 2.1. The President 2.1.1. Approve the Customers' Account and Operation Procedure; 2.1.2. Ensure the implementation of the procedure; 2.1.3. Approve the partial or full Modification/amendment of this procedure 2.1.4. Approve terms and tariffs related to the customers’ account and operation. 2.2. VP, Micro finance and Banking Operation 2.2.1. Plan, direct and coordinate the activities of the process; 2.2.2. Ensure the proper implementation of the Customers’ account operation procedure; 2.2.3. Ensure that proper understanding of the procedure has been created at all levels among all performers through training and knowledge sharing; 2.2.4. Maintain efficient integration of the process with other processes; 2.2.5. Follow-up that the procedure contributes a lot to the risk and compliance as well as internal control of the bank; 2.2.6. Ensure that performers at all level, in the process, are discharging duties & responsibilities entrusted to them in the procedure; 2.2.7. Ensure that risks are properly identified and mitigation factors are made in place during the process of operational activities; 2.2.8. Initiate the revision of the procedure, taking into account customers’ dynamism and changing operational issues. 2.3. Chief-Information Technology 2.3.1. Ensure the alignment of the Information System Department activities/tasks with the objectives of the Microfinance and banking operations; 2.3.2. Ensure the development and functionality of the system platform to extract daily, weekly, quarterly and annually report; 22 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.3.3. Ensure the development and proper functionality of integrated system platforms on the bank’s side 2.3.4. Ensure the proper execution of the task and functionality of restrictions and standing orders placed on the customer accounts; 2.3.5. Ensure the execution of the task and functionality of account status change and customer category classification. 2.4. Chief Risk and Compliance Management 2.4.1. Identify the risk associated with Customers’ Account and Operations, and develops mitigation strategies; 2.4.2. Monitor customers’ accounts operation and account-based transactions are conducted in compliance with this procedure; 2.5. Chief-Internal Audit 2.5.1. Incorporates workable audit methods in the audit manual regarding the Customers’ Account and Operation procedure; 2.5.2. Periodically audit branches as per the Customers’ Accounts and operations and provide audit recommendations; 2.5.3. Conduct Special investigation on branches as deemed necessary; 2.5.4. Produces periodic reports to the BOD and other concerned organs 2.5.5. Make sure that audit findings are timely rectified. 2.6. Director, Branch Banking Operaton and Support 2.6.1. Develop and implement cash custody and movement framework aligned with the bank’s policy/procedure and regulatory body directives; 2.6.2. Clearly understand and implement the regulatory bodies’ directives and legislation in the area of cash movement management, customer accounts operation, and others to bring operational excellence and minimize related risks; 23 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.6.3. Periodically revise the bank’s customer accounts operation, operational compliances, KYC operations, cash movement, payment clearing and policy/procedure aligned with the business and regulatory body requirements and communicating to all user organs; 2.6.4. Establish Cash holding and in transit limit of branches and ensure the procurement of Money insurance policy; 2.6.5. Responds to eligible external organs’ enquiries for information related to customers’ accounts; 2.6.6. Ensures that the procedure is implemented in a way that guarantees asset quality of the bank and proper management of suspense account balances; 2.6.7. Guide that outstanding items are timely settled and branches’ book of records are timely reconciled 2.6.8. Plan and conducts branches and customer visits in collaboration with the district management team; 2.6.9. Addresses customers’ complaints; 2.6.10. Follow-up that audit findings on branches are timely and properly rectified; 2.6.11. Prepares new formats for bank operations to amend existing ones as required; 2.6.12. Closely works with district directors, district operation managers and branch managers to boost skills of employees on operation related issues; 2.6.13. Initiates revision of the procedure as needed. 2.6.14. Draw the Branch Business licenss from NBE for new Branches to be opened, relocated branches and other need changes of branches business Licens. 24 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.7. Director, District Business Support 2.7.1. Lead and coordinate the overall LCY and FCY resource mobilization, and customer service activities of branches throughout the district ; 2.7.2. Participate in Planning , cascading communicating the approved resource mobilization targets and follow up the district LCY and FCY resource mobilization targets to branches; 2.7.3. Facilitate district level internal and external market assessment and draw daily, weekly, monthly, quarterly and annual actions plans; 2.7.4. Plan, coach, manage and coordinate the overall day to day district resource mobilization activities; 2.7.5. Follow up and support branches in conducting branch specific external and internal marketing assessment documents by providing high- level socio- economic and other data ; 2.7.6. Ensure that the branches resource mobilization committee weekly conducting regular performance evaluations as per approved resource mobilization charter; 2.7.7. Regularly evaluate the resource mobilization activity performance of branches and communicate to branches and district concerning organ for area of improvement; 2.7.8. Identify the critical challenges and weaknesses of underperforming branches and propose remedial solution to resolve - challenges and weaknesses; 2.7.9. Communicate best practices among branches in areas of resource mobilization (i.e. LCY and FCY) and customer base expansion, to scale up across branches ; 25 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.7.10. Ensure that branches are periodically updating data and information incorporated in their branch’s specific external market research documents ; 2.7.11. Plan and conducts branches and customer visits in collaboration with the district management team; 2.7.12. Propose district level annual sales campaign, communicate to branches and initiates implementation after approval (i.e., the approval shall be only for those campaign which request a budget) and facilitate for the implementation of sales campaign plans initiated by concerned corporate unit; 2.7.13. Ensure that branches are properly utilizing all possible market opportunities throughout the year in the Branch’s /District’s domain ; 2.7.14. Regularly collect and summarize IT related cases raised by branches / district office , categorize cases which will be resolved by the district IT team and those cases which will not be resolved at district level and should be escalated to Head office IT unit for further action ; 2.7.15. Timely resolve /provide first line support for IT related cases (such as network interruption , configuring printers ,personal computers , scanners and photocopier and repairing, installing, adjusting or maintaining personal computers ) that are raised from branches and/or District office and cannot be resolved by service-desk department remotely; 2.7.16. Follow up on the timely settlement of the IT related problems /cases that are escalated to the Head office IT unit; 2.8 Director – Siinqee Ihisan Banking 2.8.1. Lead and coordinate Siinqee Ihsan profit distribution approving committee 26 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.8.2. Participate in planning, directing and coordinating the activities of the team within Digital and Branch Banking regarding Siinqee Ihsan product and service activities, Branch Banking procedure, guidelines and directives of the bank; 2.8.3. Work on the Digital Banking management team on the alignment of Siinqee Ihisan division with Siinqee Ihisan activities performed under Digital Banking 2.9 Manager – Customer Account and Operations Support 2.9.1. Ensure the timely clearance of suspense accounts balance ; & reconciliation of branches’ internal accounts; 2.9.2. Shall receive delinquent list of customers due to mal-operation, lost negotiable instruments and make these accessible to online branches through interface and also sends same to off-line branches; 2.9.3. Shall identify operational risks of his/her domain for remedial action; 2.9.4. Rectifies audit findings reported on the process by internal audit and NBE examiners and take the necessary remedial action; 2.9.5. Update list of closed accounts due to mal operation on the system and manually dispatch to branches; 2.9.6. Handle the delinquent list of customers and timely dispatch to branches, Trade Service and Credit process; 2.9.7. Handle the reported lost negotiable instruments are registered for future reference; 2.9.8. Manage the accurate and timely account maintenance of ECX, Government and other corporate customers; and communicate the base branch for further processing (if any); and 27 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.9.9. Facilitate on the job training, experience sharing and guidance for the proper implementation of the procedure. 2.9.10. Addresses customers’ complaints; 2.9.11. Follow-up that audit findings on branches are timely and properly rectified; 2.9.12. Prepares new formats for bank operation to amend existing ones as required; 2.9.13. Closely works with district directors, district operation managers and branch managers to boost skills of employees on operation related issues; 2.9.14. Review and analyses the initial deposit collected by branches on the KYC pending GL account is timely transferred to the customer’s account and provide feedback to districts/branches; 2.9.15. Shall discharge other related duties and responsibilities as assigned by Director- Branch Operation and Business Support. 2.10 Manager- Issue Accounts 2.10.1. Plans, organizes, directs and controls the overall activities of the issue division; 2.10.2. Handles and manages financial instruments; like bonds, promissory notes and similar financial instruments as deemed necessary; 2.10.3. Monitors the safe custody of cash in the main vault of the treasury, and during counting, sorting, and transporting of notes and coins; 2.10.4. Authorize and monitors cash movements between central treasury, branches and the National Bank as per the bank’s procedures in this regards; 28 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.10.5. Supervises the work of individuals operating in cash in the division for correct handling of cash through verification of transfer records on the system and cash books; 2.10.6. Arranges consignment of cash to and from the issue account held with the National Bank after securing authorization and in line with the relevant procedures; 2.10.7. Keeps the dual control key of the main vault, Vault room doors and other(if any); 2.10.8. Keeps in custody local and foreign currency notes, travelers Cheque, revenue stamps, safe custody items such as documents and valuables; 2.10.9. Ensures that currency notes collected from branches are properly sorted to the National Bank’s requirements; 2.10.10. Takes utmost precaution against forged (counterfeit) notes and warns branches against such incidents; 2.10.11. Authorizes district cash consignment requests above their discretionary limit; 2.10.12. Arranges security guards and mode of transportation, prepares a memo to the dispatching branch indicating the name and ID No. of the staff to whom the cash is to be surrendered (if the cash is to be picked up by the van sent from the center), during cash collection from branches by Head office Issue Division. 2.10.13. Prepares and submits cash status reports to BODS regularly and as required; 2.10.14. Performs other related duties as required. 29 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.11 Manager, KYC and Compliance 2.11.1. Report any suspicious transactions identified by branches or other concerned units of the bank to NBE; 2.11.2. Report to NBE reinstated customers from terminated business relationship category within the specified days (currently 7 days); 2.11.3. Ensure that approval or decline of the opening of a deposit account shall be done with in the specified days (currently for 5 days); 2.11.4. Ensure that deactivation of a customer account whose profile information has not been captured in line with NBE Directive No. FIS/04/2021 and other subsequent NBE Directives in this regard; 2.11.5. Ensure, the concerned branches/ units of the bank provide adequate public notice and awareness to customers before deactivation of their accounts; 2.11.6. Ensure the availability of policies and procedures, due-diligence assessment report, minutes, exceptional approval, customers profile information in the unit/division; 2.11.7. Undertake overall KYC related matters including undertaking of assessment of the bank’s overall system and procedure; and 2.11.8. Based on proper due diligence, Provide customers’ exceptional cash withdrawal requests to the Director Branch Operation and Business Support with set of reasonable criteria ; 2.12 District Director 2.12.1. Plan, direct and coordinate the activities of the district team within the approved Branch Banking procedure, guidelines and directives of the bank; 30 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.12.2. Review, consolidate, recommend and forward District and branches budget proposal; 2.12.3. Ensure effective and efficient operation is in place within the branches under the district’s domain; 2.12.4. Coach and support branches and district office staff in implementing the Customers’ account and operation procedure, provide the required assistance and on-the-job training to enable them have the necessary knowledge, skill and the right attitude in abiding by the procedure; 2.12.5. Continuously assess the competency gap of employees of the district office and branches and arrange the appropriate need based training programs in collaboration with the Human Resource Management Process to fill skill gaps; 2.12.6. Ensure that the branch managers are discharging their duties and responsibilities in line with this procedure, and take the necessary corrective action on those who contravene the procedure in consultation with the VP: Microfinance and Banking Operation; 2.12.7. Support branches and district staffs in implementing the Branch Banking procedure; 2.12.8. Oversee appropriate risk identification, measurements and management is in place in Branch Banking operational activities; 2.12.9. Ensure timely rectification of discrepancies and comments reported by internal audit and district quality management and control and take the necessary remedial action; 2.12.10. Monitor proper understanding and awareness creation process with regard to the Branch banking procedure at all Branch performers; 31 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.12.11. Monitor operational activities at branches are meant to satisfy customers without compromising the Bank’s interest; 2.12.12. Coordinate the overall Branch Banking operational matters and service delivery at district and take appropriate action; 2.12.13. Approve Cash pick up and cashier implant services proposed for high value customers from branches under its domain; and 2.12.14. Keep the cash vault combination code of all branches under the districts domain. 2.13 District Operation Manager 2.12.15. Direct and coordinates the activities of the district offices and branches within the approved CAO procedure guideline and directives of the NBE. 2.12.16. Assesses effectiveness of coordination among branches under the district in performing their day to day operation process and executes the necessary actions in consultation with the District Director. 2.12.17. Support branches in the implementation of resource mobilization strategies of the bank. 2.12.18. Ensure that operational activities of the district office and branches contribute to the strategic goal of the bank. 2.12.19. Responsible to implement initiative such us digital and card banking activities that have strategic importance to be operationalize at the grass root level and across the board. 2.12.20. Collaborate with concerned parties to ensure that district operational risk is identified assessed and managed; 32 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.12.21. Follows up the proper implementation of Customer’s compliant handing policy and procedure; 2.12.22. Follows up and arranges the supply of office equipment, furniture & fittings stationaries and the necessary materials and supplies for the smooth operation of both new and existing branches; 2.12.23. Ensure effective and proper utilization of resources of the bank; 2.12.24. Ensure timely reconciliation of branches book of accounts; 2.12.25. Shall ensure the timely clearance of suspense accounts the district office and branches; 2.12.26. Authorize and follow up the proper cash consignment of branches per thee discretionary limit. 2.12.27. Identifies skill and knowledge gap of performers and proposes for training; 2.12.28. Shall ensure timely of audit finding reported by internal audit, district principal compliance officer and branch controllers of branches and take the necessary remedial action; 2.12.29. Shall discharge other related duties and responsibilities as assigned by the district Director. 2.14 District Senior Compliance Officer 2.12.30. Ensure that operational compliance is maintained at all times in conformance to this procedure and other directives policies procedure and guidelines; 2.12.31. Closely work with branch managers and branch controllers to be compliant at all times and avoid risks; 33 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.12.32. Timely rectify irregularities identified through operation in consultation all involved at each level.; 2.12.33. Summarizes and report irregularities identified and rectified and outstanding unresolved issue for the attention of the management. 2.12.34. Make follow of rectification of irregularities identified by Branch internal controllers on operations; 2.12.35. Conduct compliance assessments on new branches opened with respect to branch opening suitability requirements; 2.12.36. Collect and report incident repot as the issue arises; 2.12.37. Establish and update operational compliance irregularities follow-up log at district level 2.15 Branch Manager 2.12.38. Plan, coach, direct and coordinate the activities of the branch in all operation areas in a way that would increase customer satisfaction and enable the branch to achieve its financial and non- financial targets; 2.12.39. Review, consolidate, recommend and forward branch budget proposal to District Director; 2.12.40. Set team objectives, goal, performance standards and evaluate performance, facilitate team’s alignment and cascading; 2.12.41. Ensure that effective and efficient operation is taking place in compliance with this procedure; 2.12.42. Ensure performers in the branches are all discharging their duties as entrusted to them in this procedure; 34 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.12.43. Keep District management regularly informed of trends and development in the Branch environment; 2.12.44. Shall ensure that appropriate risk identification, measurement and management is in place in transactional activities of the branch; 2.12.45. Coach and support branch performers in implementing the Customers’ account and operation procedure , provide the required assistance and on-the-job training to enable them have the necessary knowledge, skill and the right attitude in abiding by the procedure; 2.12.46. Ensure that all the branch’s operation activities (such as GL balancing, Suspense items clearing, cash operations, archiving security items and logistics etc) held in in line with this procedure; 2.12.47. Ensures that suspense items are settled timely and reconciliation is done regularly in their branch; 2.12.48. Continuously assess the competency gap of employees of the branch and arrange the appropriate need based training program in collaboration with district offices to fill skill gaps; 2.12.49. Ensure that all performers are discharging their duties and responsibilities in line with this procedure, and take the necessary corrective action on those who contravene the procedure in consultation with the district Director; 2.12.50. Ensure that operational transactions are performed and settlement of every transaction item is in order, daily business opening and closing are done as per the procedure of the bank; 2.12.51. Authenticate power of attorney, if any 2.12.52. Authenticate opening document from issuing organ if need be Authenticate power of attorney, if any 35 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.12.53. Ensure that operational activities are done to the satisfaction of customers without compromising the interest of the bank; 2.12.54. Ensure compliance of branch performers with rules, regulations, and standards, 2.12.55. Manage payment of controllable expense items against budget; 2.12.56. Ensure all reserve keys except ATM and Vault under his/her custody with appropriate register books; 2.12.57. Work towards enhancing Branch’s competitive position; 2.12.58. Ensure that the availability maintenance of all Register Books, formats, stamps security instruments and other related documents are properly registered and put in sequential order. 2.12.59. Manage service levels against Customer expectation 2.12.60. Ensure the rectification of discrepancies and comments reported by internal audit, Ethics and Anti-Corruption office, district compliance and monitoring team and Branch controllers, and take the necessary remedial action; 2.12.61. Facilitate cash pickup services from high value customer and arrange timely cash consignment as per the cash management procedure of the bank. 2.12.62. Approves and authorizes transactions up to the set limit. 2.13. Customer Service Manager 2.13.1. Ensure that the necessary resources are fulfilled for daily business operations ; 2.13.2. Coach and coordinate bank Trainees, CSOs and SCSOs of the branch; 36 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.13.3. Monitor services delivery time is meet and properly handle customers request to their best satisfaction of customers; 2.13.4. Strives to facilitate the provision of high quality service to customers as per the standard; 2.13.5. Ensure that all branch transactions are processed accurately and efficiently and no unauthorized transactions are left in the system each day; 2.13.6. Ensure that daily cash closing is done appropriately and no cash balance is available on any Till of CSOs and SCSO -Cash each day; 2.13.7. Ensure that the branch’s End of Day Properly completed; 2.13.8. Be responsible for meeting the sales targets for the branch 2.13.9. Conduct sales, map potential customers and generate sales leads and new opportunities 2.13.10. Co-ordinates and support sales team efforts 2.13.11. Develop action plan in collaboration with Branch Operation Manager 2.13.12. Efficiently handle digital VISA Card custody, distribution and on time productions; 2.13.13. Authenticate power of attorney, if any 2.13.14. Authenticate opening document from issuing organ if need be. 2.13.15. Approves and authorizes transactions up to the set limit. 2.13.16. Assume all duties and responsibilities of the Branch Operation manager at branches where Branch Operation manager is not assigned or absence. 37 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.14. Branch Operation Manager 2.14.1. Ensure the branch’s operation activities (such as GL balancing, cash operations, bulk transaction processing, archiving and logistics etc) held in in line with this procedure and other relevant procedures of the bank; 2.14.2. Periodic operation plan for the branch’s back office team; 2.14.3. Ensure proper handling of branch books of account; 2.14.4. Adhere to the cash handling procedure and security requirements; 2.14.5. Follow up newly opened accounts’ productivity and transaction for a given period/time 2.14.6. Prepare and implement periodic job rotation plan for the staff under his/her supervision, 2.14.7. Identify areas of risk and Non-compliance with procedures; 2.14.8. Approve and authorize transaction up to the authorized limit set; 2.14.9. Ensure availability of sufficient operational materials and stationary items; 2.14.10. Continuously assess the work of the Bank Office staff and propose changes and enhancements to improve the results; 2.14.11. Regularly evaluate the performance of employee under his/her team; 2.14.12. Rectify audit findings related on the Branch and take the necessary remedial action; 2.14.13. Prepare monthly suspense aging report and forward to the Branch Manager/District Director. 38 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.14.14. Ensure branch fixed asset are timely reconciled and properly tagged 2.14.15. Ensure that daily cash closing of the branch is done appropriately and no cash balance is available on any Till of CSOs and SCSO -Cash each day; 2.14.16. Ensures that the standard service delivery time is met and properly handle the customer’s request; 2.14.17. Manage cash vault and dual vault keys along with the senior customer service officer (cashier); 2.14.18. Facilitate the provision of efficient and high quality services to customers; 2.14.19. Review and consolidate the branch budget 2.14.20. Authenticate power of attorney, if any 2.14.21. Authenticate opening document from issuing organ if need be 2.14.22. Approve and authorize branch transactions and accounts opening and cosigns on all the account opening documents; 2.14.23. Ensure that the holder of a current account customer being under blacklisted should be reported to Banking operation and Business support; 2.14.24. Assume all duties and responsibilities of the CSM at branches where CSM is not assigned or absence. 2.15. Branch Internal Controller 2.15.1. Collects all documents submitted for opening the account from the authorizer and make sure the account is opened as per the bank’s pertinent policy and procedure 39 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.15.2. Makes sure that the name of newly account holder is not in the list of accounts closed for mal-operation/cheque mal-operation delinquent customers list 2.15.3. Signs on the documents to ascertain the correctness and accuracy of the newly opened account 2.15.4. Follows up documents to be authenticated if there is any 2.15.5. Ensure that all the necessary documents for conducting financial transactions are fulfilled in line with the bank’s procedures; 2.15.6. Ensure that the holder of a current account customer being under blacklisted should be reported to Banking operation and Business support; 2.15.7. Make sure that all the relevant data are correctly captured in the bank’s core banking system for any transactions conducted, 2.15.8. Ensure that any transactions conducted and authorized in the branch is within the authorization limit of the approver; 2.15.9. Ensure the renewed bank license for the current year and the branch’s license are available in the branch; 2.15.10. Ensure that during the day cash balance at the hand of the CSOs is up to the allowed limit; 2.15.11. Ensure that the daily branch’s cash at vault is balance with the system balance and cash register book; 2.15.12. Ensure the Cash held in safe is within the branch’s cash holding limit, 2.15.13. Keep the transactions’ documents in the proper custody; 2.15.14. Ensure that all the data to day activities are performed in compliance with the rules and regulation of the bank; 2.15.15. Ascertain there are no unchecked cash and non-cash transactions conducted in the branch; 2.15.16. Report findings to the District Director with a copy to the Branch Manager; 40 Customer Accounts Operation Procedure SIINQEE BANK S.C. 2.15.17. Ensure that the balance held on the KYC awaiting approval internal account (GL) credited to the respective customers’ accounts. Section III: Procedural Statements 3.1. CUSTOMER CLASSIFICATION The bank shall classify its customers based as: i. Private ii. Government iii. Public enterprise iv. Associations v. Non-bank financial institutions 3.1.1. Private Customers 3.1.1.1. Individuals Individual deposit customers classification shall include single individuals as well as married couples, work colleagues, government and private employees, students and other individuals that approach the bank for the purpose of own or joint account opening; 3.1.1.2. Private Businesses Private businesses category shall include Sole Proprietorship, Ordinary Partnership, Limited Partnership, General Partnership, Joint Venture, Private Limited Companies, Share Companies in the private sector, Private financial companies and other similar entities. 3.1.1.3. Other Private Entities i. All forms of organizations which are not formed in line with the Ethiopian law and operate under special agreement with the Ethiopian Government; ii. The various Embassies operating in Ethiopian and International & Regional organizations working in Ethiopian like the United Nations, African Union, European Union, etc.; and 41 Customer Accounts Operation Procedure SIINQEE BANK S.C. iii. Funds collected from the community, donors, and other institutions, which are not legally formed, but are facilitated by the Government. The typical entities under this stipulation include funds collected from the community for road development, water and other infrastructures. 3.1.2. Government Organizations The government organizations category shall have the following sub classification. 3.1.3. Regional Government Entities Regional government entities classification shall include all regional governments’ organs, such as city administrations, zonal and district administrations, regional revenue bureau, health bureaus, state owned primary and secondary schools, different sector offices, and any other establishment under the regional government. 3.1.4. Federal Government Entities All ministries established under the federal government, government owned higher learning institutions (including universities and colleges) and other government administrative agencies. 3.1.5. Public Enterprises The public enterprises category shall include regional and federal public enterprises established for profit under Regulation or Proclamation 25/1992 and share companies established by Government. All government owned enterprises like Ethiopian Airlines Enterprise, Ethio- Telecom, Ethiopian Sugar Corporation, Ethiopian Electric utility, Ethiopian Power Cooperation and etc. 3.1.6. Cooperatives & Associations 3.1.6.1. Cooperative Societies Cooperatives, associations and unions classification shall include: agricultural cooperatives, housing cooperatives, industrial and artisans producers’ cooperatives, consumers’ cooperatives, saving and credit cooperatives, fishery cooperatives, mining cooperatives, unions, leagues etc. 42 Customer Accounts Operation Procedure SIINQEE BANK S.C. 3.1.6.2. NGOs, Charities, Societies and Associations i. Shall include local and foreign NGOs; ii. Shall include all local and foreign based charity organizations; iii. Professional associations and clubs, sectorial associations, labor unions, trade unions, women and youth associations, traditional “Equb” and “Edris”, and all religious organizations and political parties. 3.1.7. Non-Bank Financial Institutions Non-bank Financial institutions includes: i. Insurance Companies; ii. Microfinance Institutions 3.2. Types of Deposit Acounts 3.2.1. Local Currency Deposit Account 3.3.1.1. Saving Deposit Accounts a) Ordinary Savings Account b) Compulsory Saving Account c) Handhura /Minor Saving account d) Youth Saving Account e) Sebbeta Ayo Saving account f) Sorema (Retirement) saving Account g) Special Saving Account h) Non-documented Ethiopian National Saving Account 43 Customer Accounts Operation Procedure SIINQEE BANK S.C. 3.3.1.2. Current Accounts a) Ordinary Current Account b) Interest Bearing Account c) ECX related Accounts 3.3.1.3. Fixed-Time Deposit 3.2.2. Foreign Currency Deposit Accounts The Bank offers the following foreign currency deposit products in selected branches: a) Non Resident Transferable Foreign Currency Account (NRT FCY); b) Non Resident Transferable Birr Account (NRT); c) Non Resident Non – Transferable Birr Account (NRNT); d) Foreign Exchange Retention Accounts ; e) Foreign Currency Saving accounts f) Diaspora Accounts; i. Diaspora Demand Deposit Accounts; ii. Diaspora Fixed Time Deposits; and iii. Non–Repatriable Birr Accounts/Saving Account/ iv. Foreign currency Saving account 3.3. Features of Local Currency Deposit Accounts 3.3.1. Saving Deposit Accounts 3.3.1.1. Ordinary Savings Account a. It is interest bearing account which is compounded monthly and calculated on monthly minimum balance; b. The minimum balance to open ordinary saving account is birr 50. However, it can be opened and maintained with zero balance for a month with the intention of relationship creation and introduction of potential customers to banking services; 44 Customer Accounts Operation Procedure SIINQEE BANK S.C. c. Within a month, the account holder should credit at least a minimum of Birr 50 in his/her account. However, if the account is not credited in the specified period, it should be closed following the normal account closing procedure; d. Savings account can be opened and/or operated by a legal agent in the name of the principal, against producing a power of attorney, which shall be authenticated from the respective issuing body, or attested by the bank’s legal service. If Branch Managers or Customer Service Managers prove the genuineness of the document through proper KYC process, they may open account and allow operation without authentication and with legal advice. e. The minimum interest applied on ordinary Saving accounts should be as stated on the terms and tariff of the bank; 3.3.1.2. Compulsory Saving Account Compulsory savings is a mandatory account to access some microfinance loan facility provided by Siinqee Bank. It is classified into pre-loan saving and post loan monthly saving. The pre loan saving is a certain fixed percentage of the approved loan and that of the post loan monthly saving is a fixed value that will be saved on regular basis (monthly) during the loan contract period. a. It is applicable to Group based, Agro-business individuals and Micro and Small Enterprise loan borrowers; ▪ Compulsory saving shall be categorized into two parts i.e. pre & post loan savings; b. The first compulsory saving is a pre loan savings on money to be deposited before accessing loans except for group based loans which will be deducted from the approved loan; c. The second compulsory saving is a monthly (post loan) compulsory saving which will be deposited monthly within the agreed loan period/duration; and d. All compulsory savings are not withdrawn until the loan is fully repaid. e. The interest rate that shall applicable on this saving account is 7% 45 Customer Accounts Operation Procedure SIINQEE BANK S.C. f. For Group Based Loan Borrowers, 5% of the approved loan shall be deducted out rightly as pre-loan saving from each individual and posted to their compulsory saving account; g. Each group based borrowers are required to save a minimum of Birr 100 per month as a monthly post loan compulsory saving within the loan period; h. Agro-business individuals, 5% are expected to save 5% of the loan request before approval of the request as a pre-loan saving; i. Micro and Small Enterprise Borrowers are expected to save 10% of the loan request before approval of the request as a pre-loan saving; j. The other compulsory saving for MSE borrowers are expected to save post loan monthly saving which is Birr 500.00 per enterprise that to be deposited monthly during the loan agreement period; and k. Agri-Business Individual Borrowers also expected to save 5% of the loan request as a pre loan saving and after loan disbursement they will save 100.00 per month as a monthly post loan saving during the loan agreement period. 3.3.1.3. Handhura/Minor Account a. It is a saving account opened for individuals below the age of 18. b. The account shall be opened and operated by parents or legally appointed tutor; c. At time of reaching major, the total balance will be transferred to an account maintained and operated by the Major; d. The minimum deposit time for Handhura saving is five (5) years and the bank pays higher interest as stipulated in terms and tariffs document; e. If the parent/guardian who had opened the account becomes incapable to exercise or loses his/her power of guardianship for various reasons, another guardian appointed by the law shall operate the account by producing a legal document, which ascertains his/her sole guardianship authority; f. The Account should be opened in such a way that the bank would be able to make payment: i. To the minor when he/she attains the age of majority (18 and above) by ascertaining it via pertinent documents to this effect; 46 Customer Accounts Operation Procedure SIINQEE BANK S.C. ii. To his/her guardian appointed by the court of law when his/her parents die while he/she is a minor; iii. Children that have proved to be having income of their own and who opened the account by themselves can have access to their deposit account any time they need. g. Minimum deposit to open the account is 50 birr h. No transaction and account maintenance fee; and i. No debit card is issued on this account. 3.3.1.4. Youth Savings Account a. It is an account for both male and female youth segment in the age group of 18 to-29 years b. Minimum deposit requirement of 50 birr must be deposited ; c. It is accompanied by debit card; d. It has no transaction fee and free account maintenance; and e. Better interest rate than the normal saving rate will be applied on the account as the terms and tariff document of the bank. 3.3.1.5. Sorema (Retirement) Savings Account Sorama (retirement) saving is designed to mobilize savings from the people during their active age and when they are earning more income that to be deposited with special interest rate and to be withdrawn for investment, creating family or own jobs or to cover future planned or unplanned expenditures. a. It has no transaction fee and free account maintenance; b. Better interest rate than the prevailing saving rate will be applied on the account as stipulated on terms and tariffs documents of the bank; c. The minimum deposit time for Sorama saving is five (5) years and the bank pays higher interest as stipulated in terms and tariffs document; d. The Minimum deposit for Sorema saving account is Birr 1000. e. If the Sorama saving client breaches the agreement and decides to withdraw fully or partially early before the agreement date, the interest to be paid on the deposit shall be the prevailing saving interest rate; and 47 Customer Accounts Operation Procedure SIINQEE BANK S.C. 3.3.1.6.
